1. SWE Finance 201 Stacey M. DelVecchio Betty Shanahan FY12 Board Orientation

2. Page 2 SWE Finance 201 Agenda Budgets – Describe and define Restricted vs. Unrestricted Funds – Use and management Financial Responsibilities Strategic Financial Planning Reporting Q and A

3. Page 3 SWE Budgets Operational Budget – This budget is defined to manage our HQ, programs, services and membership benefits. Conference Budget – This budget is defined to manage the annual national conference Managed by HQ and BOD. Generally approved April/May of each year.

4. Page 4 SWE Budgets - Operational Operations - Income Dues Professional, Collegiate, Corporate Programs and Services Wow! and other outreach, Grants, Awards, Career Service Center, Professional Development, Collegiate Leadership Forum Publications Magazine Other Contributions, Royalties, Conference subsidy, Installation, CPC unrestricted donations

5. Page 5 SWE Budgets - Operational Operations - Expenses Management Committees, Board of Directors, Individual Officers, Senate, Executive Staff Administrative HR, Accounting, HQ Staff, and any overhead costs Programs Wow! and other Outreach, Grants, Awards, Career Service Center, Professional Development, Collegiate Leadership Forum, External Affiliations, Archives, Website

6. Page 6 SWE Budgets - Operational Operations - Expenses (cont.) Membership Sections and Regions services, Collegiate, Professional and CPC member services Publications Magazine Relations Public Policy and Public Relations

7. Page 7 SWE Budgets - Conference Conference - Income Registration, Sponsorship, Events, Exhibits Conference - Expenses Speakers, Conference Facilities and fees, Conference Management, Events, Publications Note: Overage of FYXX Conference 95% to Operating Budget for FYXX+1 budget 5% to Contingency Reserve Fund

8. Page 8 SWE Annual Budget Process Operations Budget Use standard budget items based on historical spend Incorporates feedback from annual programs and services assessment outcomes Includes fund requests in support of next year’s strategic focus items Initial version is developed by ED and Treasurer and reviewed by Finance Committee Submitted to BOD for approval at ~BOD3 Conference Budget Handled separately from Operations Budget ED develops with reviews by Treasurer and Finance Committee BOD approves

9. Page 9 SWE Restricted and Unrestricted Income may come in as restricted or unrestricted. Example Restricted – Donor has identified a specific use. Example – IBM donation was identified for use for the Wow! program. Example Unrestricted – funds that are donated and are used in the operational budget as needed. Example – Board of Directors challenge. Notes – Many of our Programs would not be done if restricted funds were not available. Example – Outreach Fees get attached to grants that National manages but are passed thru to ultimate recipient. Example – Scholarships @10% and PDG grants @15% Example we don’t get fee – CPC region funds. Advertising/Sponsorship – donations for an opportunity – need to give something in return to Sponsor.

10. Page 10 Restricted Fund examples ExxonMobil Grant IBM Partnership Hoffman Bequest Ford Grant Collegiate Leadership Coaching Bechtel Grant AWE Program Fund CPC Fund SWE Restricted and Unrestricted

11. Page 11 SWE Funds Use and Management General Operating Reserve (Managed by HQ) Retained earnings (capped so that excess transfers to Contingency Reserve Fund) Small unused restricted funds not tracked separately (never included in total even though in the reserve ) Contingency Reserve Fund (Fund Managed by BOT) The fund was defined for SWE to have for urgent needs. Currently funded by 5% of conference overage. Changes to fund documentation and use of funds owned by the Senate. SWE-EFI accounts (Fund Managed by BOT): Headquarters Fund – a permanent endowment that provides income to SWE-HQ. Life membership donations go to the fund. It also receives some donations and some bequests. Awards Fund - Formed by merging several single awards funds. Provides an annual subsidy to be used by SWE for awards. Scholarship Fund - a permanent endowment that provides income for scholarships

12. Page 12 SWE Financial Responsibilities HQ/Treasurer Responsibilities: Monthly statements sent to Treasurer – 20 th of each month Statements forwarded to BOD and Finance Committee for review – 25 th of each month Detailed statements (>$250) sent to each committee from HQ– by month end Management of all staff time expenses Approval of BOD travel and other BOD expenses (shared w/ President) Provide input on BOD motions Overall management of operations and conference budgets Update BOD and Senate on finances BOD Member Responsibilities: Understand the general finances of SWE Approve and manage Conference and Operations Budgets Review detailed statements and understand what charges are occurring Approval of committee expenses Engage Treasurer in BOD motions for budget analysis

13. Page 13 SWE Financial Responsibilities (cont.) Finance Committee Members Responsibility Review financial statements and understand the information Provide input on draft budgets Advise BOD on proposed budgets and ongoing financial status Provide input as requested to Senate on funds which they own documentation/approval Maintain Finance Manual and other documentation Committee Chair Responsibilities: Review detailed statements to understand spending and available funding for remainder of year – ongoing If unknown charges are hitting your line items, raise questions to BOD contact or Treasurer – ongoing Senate Responsibilities: Contingency Reserve Fund document and use of funds Everyone reviews and ask questions! Evaluate dollar amounts for questions to ensure significant to that budget.

14. Page 14 SWE Travel Policy – Ground Rules GROUND RULES: The BOD will allocate funding for travel expenses for approved meetings through the budgeting process. There shall be a line item in the SWE budget allocated for travel reimbursement for each group holding such approved meetings. The BOD liaison will determine the distribution of the budget for each approved meeting and advise the attendees of the available funds prior to the meeting. The SWE President or Treasurer shall act in this capacity for the BOD. Prior to applying for reimbursement, SWE volunteers will determine if funding from their employers or universities can be obtained to defray the cost of attending meetings. Employer and/or university funds used for travel will not be reimbursed. By requesting reimbursement under these policies, a SWE volunteer is certifying that she/he will not take an income tax deduction for any of the reimbursed expenses. SWE volunteers are expected to be prudent and cost-effective when making their travel plans.

15. Page 15 SWE Travel Policy – Eligibility ELIGIBILITY: This policy pertains to SWE volunteers to attend approved meetings for society level activities. Regional, Section, and MAL policies may vary. Policy for travel reimbursement for SWE Staff is documented with a Headquarters policy. Travel of Staff should be included in the budget process if they are expected to attend approved meetings. Travel expenses for attendance at Regional and Society conferences or speaking engagements are not included in this policy, unless there is a required Board of Directors meeting associated with these conferences. Expenses for the President (or designated representative) to attend speaking engagements are covered in accordance with approved budgets. Expenses for the Director of Regions (or designated representative) to attend regional conferences are covered in accordance with approved budgets.

16. Page 16 SWE Travel Policy Reimbursable Expenses The actual cost of airfare or rail fare to the site of the meeting. Also included is the cost of one checked bag of 50 pounds or less. The cost of changing an airline ticket is not reimbursable unless there are extenuating circumstances, such as a family emergency. Note: Every attempt should be made to obtain airfares in advance and at lower rates. Reimbursement for automobile transportation to the meeting is at the IRS approved business rate. Reimbursement for a rental car plus gas is also covered. If the cost of mileage or rental car plus gas exceeds the cost of air transportation to the meeting, reimbursement will be capped at the cost of air transportation. Lodging required during a meeting will be reimbursed at the rate of half of a double room or actual cost, whichever is less, at the hotel where the meeting is held. The BOD liaison may approve reimbursements for the full cost of a single room when circumstances warrant it (for example, an odd number of people attend a meeting). Shuttle or cab fare from the airport or rail station to/from the meeting site and to/from home. A rental car plus gas is also reimbursable if this is more economical than the shuttle or cab fare. Airport parking, tolls, and parking at meeting site. Telephone expenses pertinent to meetings performed by telephone. The cost of internet connection at the hotel, as needed for meeting purposes. Other expenses such as individual meals, telecommunications, entertainment, and incidentals are not reimbursable. Cost of meals provided or required during meetings is reimbursable. All meals are reimbursable for Collegiate members. For regional conference participation, the Director of Regions (or designated representative) can be reimbursed for registration expenses. All other expenses are reimbursable per this policy.

17. Page 17 Confirm other funding sources have been investigated Ensure funding is available in your budget Coordinate with BOD contact if unsure or if additional funding is needed Spend money on items once pre-approval granted by BOD contact Submit reimbursement form and receipts within 30 days to BOD contact Copy HQ on the communication BOD contact sends approval to HQ for processing HQ processes checks and sends reimbursement Checks processed on the 15 th and last day of month Reimbursements are only processed once all receipts and approvals are received Option for in-kind donations Send reimbursement form to HQ and check appropriate box Please check here is you would like your reimbursement to be used as a donation to the Society of Women Engineers (SWE) No money is sent, but receipt is sent with appropriate donation amount Can be used for tax purposes to quantify the in-kind donations to the Society Can not be used for expenses reimbursed by another source SWE Reimbursement Process

18. Page 18 Strategic Financial Planning Work in support of existing programs and services Work specific to the Strategic Plan Work that would support emerging opportunities RE$OURCES

19. Page 19 Income & Expense Sources Income Source Increase membership income – higher dues or more people with various levels dues and services Increase Conference fees Change Professional Development Model – members get ## free and then pay for additional Increase Publication income - includes other publications defined as Intellectual property Increase our ‘Technical Standards’ - provide Skilled Employees as consultants to others to provide services we are skilled at – research, leadership model Consider Other Income sources – regions/Sections for example for short term budgets Expense Source Decrease Conference Expenses relative to income Review General and ADM expenses for reductions or capability of recovering costs (and tracking of recovery) Expense Note: Data clean up needed for identifying missing expenses Public affairs and other need to be tracked better Treasurer to track these ongoing and to be part of regular process in annual budget process.

20. Page 20 Methodologies for Tracking & Usage 1.Comparison to Industry Trends 2.Operations Trends 3.Conference Trends Use to track/trend budgets for Conference and Operating budget At a minimum - last 2 years, current year and future year Board procedures will be updated to include new charts into Treasurer section or into Finance Committee procedure as needed Charts should be used to identify any issues or obvious concerns. Maintained by Treasurer & Finance Chair Reviewed annually by Finance Committee

21. Page 21 Income – SWE compared to CESSE Expense - SWE compared to CESSE Comparison to Industry Trends Methodology for Tracking & Usage

22. Page 22 Operations Income Operations Expense Operations Trends Methodology for Tracking & Usage

23. Page 23 Conference Income Conference Expense Conference Trends Methodology for Tracking & Usage

24. Page 24 Linkage to Strategic Planning Strategic Planning process will contain 2 years back and current year to define DOLLARS by GOALS Treasurer owns this to start identify goal programs and dollars for them Provide annually for ASPR process Information will be added into the strategic planning process Feb 2012 will be first time to use with development of process Info to be done by December 2011 with Treasurer and PE Strategic plan document will include similar chart just before Goals/Objectives area per SPC

25. Page 25 SWE Financial Reports Monthly financial reports What you’ll receive What to do with them Provide an understanding of what to do with monthly financial statements

26. Page 26 What You’ll Receive On the 25 th of the month (starting in September) Receive financial statements Posted on… “BOD Private” Community “Finance Committee” Community Committees receive their own info If annually budget is >$250 BOD contact copied on communications At the following board call/meeting Analysis of results

27. Page 27 Monthly Financial Reports Summary of conference income & expenses Detail of conference income & expenses Conference Budget Operations Budget Summary of operations income & expenses Detail of operations income & expenses

28. Page 28 Conference Statements & General Income Statements The Conference Statements and General Income Statements all have these same headers. If you have the latest financial reports, you can tell what the budgeted amount is.

29. Page 29 General Income Statement Mmyy General Income Statement.xls Use as a reference to get a high level view of actuals versus budget for operations. Recommended one to review initially. General Income Statement….

30. Page 30 Detailed General Income Statement Mmyy Detailed General Income Statement.xls Includes the complete list of line items you’ll find in the budget. To Detailed General Income Statement… From General Income Statement…

31. Page 31 Conference Statement Mmyy Conference Statement.xls Use as a reference to get a high level view of actuals versus budget for conference. Recommended one to review initially. Conference Statement…. Same methodology as General Income Statement

32. Page 32 Detailed Conference Statement Mmyy Detailed Conference Statement.xls Includes the complete list of line items you’ll find in the budget. To Detailed Conference Statement… From Conference Statement… Same methodology as Detailed General Income Statement

33. Page 33 What To Look For Review General Income Statement or Conference Statement for a look at how we’re doing without getting bogged down in the details Reference Detailed General Income Statement or Detailed Conference Statement to review specific activities you are tracking Use CTRL F to find what you need

34. Page 34 Other Financial Statements Expanded balance sheet Assets & liabilities Detail of various fund balances managed by HQ Includes contingency reserve fund as well Other Financial Statements

35. Page 35 Q & A Questions? Contact… FY12 Treasurer - Stacey M DelVecchio Delvecchio_stacey_m@cat.com Delvecchio_stacey_m@cat.com Executive Director - Betty Shanahan betty.shanahan@swe.org betty.shanahan@swe.org